Hedge Fund Trade Of The Week: Carter's

Where’s the fast money finding opportunity? In this regular feature Anthony Scaramucci aka The Hedge reveals his latest greatest pick!

This week’s trade is long... Carter's .

Check out some of the company's stats:

Carter's Inc. (CRI)
Sector: Services
Industry: Retail (Apparel)
Based in Atlanta, Georgia
52-week high: $34.24
52-week low: $19.17

"In 2007 more babies were born in the US than any other year in history," says Anthony Scaramucci.

As if that's not reason enough to get long this iconic maker of children's clothing Scaramucci also likes the stock for a few other reasons.

"It trades at 10.7 times earnings for 2010 and 10.1 for 2011," he says. "They've got a core rate of return of 20% on the equity. And in the hedge fund community, widely followed billionaire investor Steve Cohen of SAC Capital owns 5.4% of the firm."

Long-term, Scaramucci agrees with Street price targets of about $35.50.

* Anthony Scaramucci runs SkyBridge Capital, a leading alternative asset manager with more than $7 billion under management. Every week on Fast Money, Scaramucci, aka 'The Hedge', takes you behind the hedges, giving you an unprecedented look at the names getting the most chatter amongst the hedge fund community.

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Trader disclosure: On Sept. 27th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Terranova Owns (APA), (AAPL), (ARUN), (BMO), (C), (IBM), (HES), (JOYG), (XBI), (FTO), (OXY), (ORCL), (PEP), (POT), (RSH), (SU), (RIG), (UPL), (VRTS); Weiss owns (BAC), (MOS), (CSX), (HK), (TXN), (WFR), (QCOM); Weiss is short (SF); Pete Najarian owns (NETL) call spreads; Pete Najarian owns (POT) call spreads; Pete Najarian owns (CNI); Pete Najarian owns (AMZN) call spreads; Pete Najarian owns (AKAM) call spreads; Pete Najarian owns (RAX) call spreads; Pete Najarian owns (LLNW) call spreads; Pete Najarian owns (DD); Pete Najarian owns (NOV); Pete Najarian owns (YHOO); Karabell owns (POT), (RIMM), (AAPL); Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE), (PRST)

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For Richard Volpe
***No Disclosures***

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—Wire services contributed to this story